OASIS FILTER INTERNATIONAL LTD v MANZ

This was a Costs decision arising from Oasis Filter International Ltd v Manz, 2025 ABKB 565, wherein the Court dismissed the Plaintiffs' Action, finding that leave to commence a derivative Action was required and the limitation period had expired.

The Defendants as the successful party, asks for Costs in the amount of $530,010.57 based on a level of indemnity of 60% of their actual litigation costs. The Plaintiffs argued Schedule C Column 4 Costs should be awarded, while also acknowledging that double Costs from the date of a formal offer to settle were appropriate. The Plaintiffs accepted that $268,391.07 in Costs were appropriate. 

The Court began by reaffirming the general principle that a successful party is entitled to Costs, subject to the Court’s discretion, citing McAllister v City of Calgary (City), 2021 ABCA 25.

The case was complex, involving allegations of breach of fiduciary duty, patent infringement, and patent validity. The evidentiary record was substantial, and both parties engaged in litigation conduct that unnecessarily prolonged the proceedings, including production disputes, among others.  Although the Plaintiffs were ultimately unsuccessful, their claims were not frivolous and raised important issues. As a result, the Court awarded the Defendants Costs under Schedule C, Column 4, plus reasonable disbursements, with double costs after service of the Defendants’ formal offer to settle.